American Century Small Cap Value Fund Lags in Q3 as Letter Details Headwinds and New Positions

Overview

• The fund reported a 4.69% Q3 2025 return versus 12.60% for the Russell 2000 Value Index, citing a challenging quarter for its holdings.
• Managers said equities broadly rose in Q3 2025 and noted the Federal Reserve delivered a rate cut during the period.
• Euronet Worldwide was described as a detractor, with the fund pointing to immigration policies and the rise of stablecoins weighing on money transfer volumes.
• Americold Realty Trust was said to be pressured by high inflation and interest rates, with GLP-1 drug adoption contributing to lower food volumes and weaker earnings.
• The fund disclosed new positions in Ashland, which it views as high quality at a steep discount, and in Bath & Body Works, which it sees as temporarily undervalued with strong free cash flow support.